Good Morning & Welcome to Tuesday's trading action at Dalal Street, dated 30th July 2019

In early action, SGX Nifty is seen hanging in there as investors are seen awaiting outcome of face-to-face trade talks between U.S. and Chinese officials, due to start Today in Shanghai.

Well, looking at streets mood, we suspect — no grand deals and extremely low hopes for progress. It's unlikely that either side will back away from demands.

7 AM GLOBAL UPDATE:

DOW (+29, 27221)

NASDAQ (-37, 8293)

SGX NIFTY (+27, 11238)

NIKKEI (+155, 21772)

HANG SENG (-47, 28060)

BOVESPA (+664, 103483)

OIL (+0.30, $57.17)

GOLD (+2, $1423)

USD/INR: 68.73

Institutions:

FII: - 704.42 Cr

DII: +1351.64 Cr

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global: Neutral.

FII: Negative.

DII: Positive.

F&O: Neutral.

‪Sentiment: Negative.

NIFTY’s CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 11,189.

Nifty’s SUPPORT:

Intraday: 11139/11001.

Medium Term: 10901.

Long Term: 10,501.

Nifty’s RESISTANCE:

Intraday: 11251/11361/11487.

Medium Term: 11707/11857.

Long Term: 12,251.

Nifty’s RANGE:

Intraday: 11151-11271.

Medium Term: 10901-11707.

Long Term: 10501-12001.

Nifty’s OUTLOOK:

Intraday: Range-bound.

Medium Term: Neutral.

Long Term: Neutral.

Our call of the day suggests that bright sunshine only if Fed goes for aggressive rate cuts this Wednesday. The street is broadly expecting the Federal Reserve to lower its benchmark interest rate in its meet by a quarter-point, the first cut in 10 years.

We will spy with one big eye as the key is in going for a bigger rate cut and most importantly the earliest the better strategy.

Our chart of the day establishing short positions in stocks like IDBI and DISH TV with interweek perspective.

IMPORTANT THEMES FOR THE DAY:

The two biggest catalyst this week:

1. The fresh round of talks between U.S-China in Shanghai on Tuesday (July 30) and Wednesday (July 31).

2. The Federal Open Market Committee (FOMC) meet (July 31). (The key is in going for a bigger rate cut and most importantly the earliest the better strategy).

Any positive outcome from any of the two key events will lead to larger rebound at Dalal Street and bargain hunting could be the theme. That said, it will be interesting to see how the big FIIs camp react to the two catalyst. Please note, FIIs have been in exiting mode, selling close to Rs 14,728 crore worth of equities in July alone.

Technically, the benchmark Nifty is well supported at its 200-DMA at 11141 mark. The technical landscape continues to be negative as the recent sequence of lower high/low is intact on daily charts of Nifty.

Meanwhile, FY19-20 Q1 earnings season is on, the big names and the numbers to trickle-in today are:

• Tuesday: PEL, TECHM, SOLAR INDUSTRIES, VIPIND, SHOPERSTOP, AXIS BANK, UNITEDBANK, HEROMOTO, CHOLAFIN, BANK OF INDIA, PNBHOUSING, DISHTV, MRPL, NMDC, GRANULES, HEIDELBERG CEMENT, GUJGAS, NDTV.

Stocks in news:

• Strides Pharma Q1: Net profit at Rs 3.7 crore versus loss of Rs 4.3 crore, revenue up 45.1% at Rs 685.8 crore versus Rs 472.7 crore, YoY

• Muthoot Capital Q1: Net profit down 22.4% at Rs 13.6 crore versus Rs 17.5 crore, revenue up 26.3% at Rs 143.9 crore versus Rs 114 crore, YoY

Outlook for Tuesday: Nifty likely to consolidate.

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